Our 2011 election manifesto - Labour Party

We excel in many different areas of technology, from earthquake technology to new greentech
initiatives. We could market these skills and knowledge overseas if we were prepared to
value them the same way as we value our primary commodities.
Labour will ensure that government departments and agencies develop an outwardlooking
function so that they can assess the opportunities for exporting their
expertise, systems and research wherever appropriate.
Labour will explore further opportunities to export and promote our unique and
indigenous arts and culture.
Adding value to exports
New Zealand cannot afford simply to produce more and more primary products. We risk
irreparably damaging our environment and cutting off one of our greatest foreign exchange
earners, tourism if we think like that. Increasing the quantity of our primary produce is not
sustainable. We must increase its quality.
This is a considerable challenge which we grappled with in the time of the Fifth Labour
Government. Achieving the quantum leap required to move our export sector from raw
exports to value-added exports, requires investment in research and development and
innovative thinking.
We will also ensure that the interface between trade, climate change, and labour and
environmental issues is properly and consistently observed and managed.
For more detail, see Labour‟s Economic Development policy.
Getting monetary policy settings right
Changing our monetary policy is one way we can help encourage investment in productive
exporting businesses.
A volatile New Zealand dollar and persistently high interest rates are causing structural
problems for our economy.
Currently, the New Zealand dollar is one of the ten most traded currencies in the world. This
heavy trading is reflected in a highly volatile currency which makes doing business more
difficult for our exporters. Our exporters have to plan for the value of the dollar changing at
great speed and little predictability. When our exchange rate surges, it undermines the
competitiveness of our prices in destination markets. When the exchange rate falls, the price
of inputs like fuel can soar unexpectedly.
Our current policy is not well designed to produce a stable and competitive exchange rate,
nor to keep interest rates as low as possible. In fact, it often operates the other way round.
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